MARKET PULSE-Endo Health, Orbitz, GT Advanced, Cytori, Cutera, Sykes

Reuters Staff

11 Min Read

(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; the Morning Call newsletter, r.reuters.com/vut44v) U.S. stocks fell on Tuesday, as investors took profit following two days of gains, ahead of data later in the week they hoped would give a clearer indication of the strength of the U.S. economy. The Dow Jones industrial average was down 0.16 percent, the S&P 500 was down 0.22 percent and the Nasdaq Composite was down 0.05 percent.

** ENDO HEALTH SOLUTIONS INC, $55.35, up 27 pct (10:05 a.m. ET)

The U.S.-based specialty pharmaceutical company said it would buy Canadian peer Paladin Labs Inc for about $1.6 billion to expand its presence in Canada and emerging markets.

** ORBITZ WORLDWIDE INC, $7.65, down 20 pct (9:41 a.m. ET)

The online travel agency posted quarterly earnings that missed forecasts as costs rose. The company, which operates Orbitz and CheapTickets brands in the United States and ebookers in Europe, pared its revenue forecast for 2013.

** GT ADVANCED TECHNOLOGIES INC, $10.00, up 19 pct (10:07 a.m. ET)

** RUBICON TECHNOLOGY, $10.66, up 21 pct

Apple Inc will open a manufacturing facility in Arizona in partnership with mineral crystal specialist GT Advanced Technologies to make sapphire materials for Apple’s popular electronics devices.

Sapphire materials company Rubicon rose on news of the deal as it could benefit from higher demand in the industry.

** CYTORI THERAPEUTICS INC, $3.42, up 64 pct (10:06 a.m. ET)

The medical device maker said on Monday it would receive up to $531 million from Chinese company Lorem Vascular as license fee for its stem cell therapy that removes fat cells from a patient’s body. These cells, which are then injected into the affected area, increase blood profusion and heal the wound. Lorem will market the therapy in Asia-Pacific.

** BROADSOFT INC, $25.18, down 24 pct (10:05 a.m. ET)

The internet communications company forecast fourth-quarter results below expectations, citing concerns about the short-term service provider spending. It also reported a third-quarter loss, compared with a profit a year earlier, as operating expenses rose.

** KERYX BIOPHARMACEUTICALS INC, $13.33, up 20 pct (10:04 a.m. ET)

The company said its sole drug in development, Zerenex, proved to be effective in treating patients with chronic kidney disease not on dialysis.

** RECON TECHNOLOGY LTD, $5.49, up 17 pct (10:29 a.m. ET)

The Chinese oilfield services provider said it received several orders for specialized oilfield furnaces valued at $1.9 million from China National Petroleum Co. The company said it expects to complete the orders before the end of 2013.

** IMMUNOGEN INC, $14.00, down 15 pct (10:03 a.m. ET)

The biotechnology company said it would discontinue a mid-stage trial of its experimental small-cell lung cancer drug following the death of a patient.

** CUTERA INC, $8.43, down 15 pct (10:35 a.m. ET)

The medical device maker posted a bigger-than-expected quarterly loss, citing continued softness in its Canadian operations and a decline in its footcare business.

The supplier of medical and surgical disposable products reported a higher quarterly profit, helped by a reduction in costs. Second-quarter earnings rose to $1.1 million, or 7 cents per share, from $0.1 million, or $0.00 per share, a year earlier.

** LEAPFROG ENTERPRISES INC, $7.98, down 8 pct (10:03 a.m. ET)

The toy company cut its full-year sales forecast as rising competition hurt demand for its LeapPad tablets. The company also said it “sees a weak retail climate and growing concern surrounding this holiday season, especially in the U.S.”

The oil and gas producer’s third-quarter profit fell short of market estimates due to lower-than-expected oil output. The company also forecast lower fourth-quarter production due to logistical and weather-related constraints, including Tropical Storm Karen and other unplanned downtime.

** PETROQUEST ENERGY INC, $4.50, down 7 pct (10:49 a.m. ET)

The oil and gas producer reporter lower-than-expected results for the third quarter as its oil production fell below analysts estimates.

** LUMINEX CORP, $18.19 down 6 pct (10:44 a.m. ET)

The maker of molecular diagnostic products reported lower-than-expected quarterly results, citing a significant order delay from its largest customer, and cut its 2013 revenue forecast to $212-$217 million from $220-$230 million.

** MCDERMOTT INTERNATIONAL INC, $7.07, down 5 pct (10:02 a.m. ET)

The engineering and construction firm reported a wider-than-expected quarterly loss on Monday due to lower revenue from two projects in Australia and increased cost estimates on a project in Malaysia.

** REGENERON PHARMACEUTICALS INC, $296.00, up 5 pct (10:01 a.m. ET)

The company reported better-than-expected quarterly results after net U.S. sales of its eye drug Eylea jumped 49 percent to $363 million in the third quarter.

** AOL INC, $41.38, up 7 pct (10:00 a.m. ET)

The online media group reported a 6 percent rise in third-quarter revenue, helped by a rise in advertising sales.

** QUICKSILVER RESOURCES INC, $2.24, up 4.6 pct (9:58 a.m. ET)

Italian oil and gas group Eni said it had reached an agreement with Quicksilver to explore and develop onshore shale oil reservoirs in the United States. Eni said it would pay up to $52 million to take a 50 percent stake in Quicksilver acreage in the Leon Valley area in West Texas.

** ENCANA CORP, $18.65, up 4 pct (9:58 a.m. ET)

Canada’s largest natural gas producer will cut about 20 percent of its workforce, slash its dividend and invest nearly three-quarters of its 2014 capital spending budget in more lucrative oil and liquid gas assets.

The IT services firm reported a better-than-expected 22 percent rise in quarterly revenue as businesses, especially financial firms and companies in Europe, outsourced more work and increased spending on consulting.

** DIAMONDBACK ENERGY INC, $56.04, up 5 pct (11.15 a.m. ET)

Analysts at Topeka Capital Markets raised their price target on the oil and gas producer’s stock to $64 from $60, citing the company’s development activities in Wolfcamp in the Permian Basin of West Texas.

** MICHAEL KORS HOLDINGS LTD, $77.70, up 4 pct (9:55 a.m. ET)

The company reported a better-than- expected 40 percent jump in quarterly revenue, driven by strong demand for its trendy handbags and watches.

** FOREST OIL CORP, $4.61, down 8 pct (9:54 a.m. ET)

The company reporter lower-than-expected results on Monday as its oil and natural gas liquids production volumes fell short of analysts’ expectations. The company also said it expects fourth-quarter output to dip 2 to 4 percent from the third quarter.

** CORNERSTONE ONDEMAND INC, $49.49, up 7 pct (9:53 a.m. ET)

The HR software maker said third-quarter revenue rose 50 percent, helped by strength in its North American and EMEA (Europe, Middle-East and Africa) business.

** TENET HEALTHCARE CORP, $44.25, down 8 pct (9:52 a.m. ET)

The company said its third-quarter net income slid from a year earlier due to costs related to its acquisition of smaller hospital chain Vanguard Health Systems Inc. Tenet completed the acquisition of Vanguard for about $1.8 billion on Oct. 1 to expand into new markets and position itself to benefit from an increase in patients who have health insurance under President Barack Obama’s healthcare reform.

** SAFE BULKERS INC, $8.82, up 6 pct (11.46 a.m. ET)

Citigroup analysts raised their rating on the dry bulk company to “buy” from “neutral”, according to theflyonthwall.com.

** DRYSHIPS INC, $3.43, up 6 pct (9:51 a.m. ET)

** OCEAN RIG UDW INC, $20.17, up 11 pct

DryShips’ drilling unit, Ocean Rig, is in the early stages of creating a new master limited partnership (MLP) with an initial public offering targeted during the second quarter of 2014.

Analysts say the formation of an MLP would be a positive, given DryShips’s 59 percent stake in Ocean Rig and the corresponding increase in cash flow from MLP distributions.

** OPEN TEXT CORP, $80.08, up 7 pct (9:50 a.m. ET)

The Canadian business software maker said it would buy privately held cloud computing company GXS Group Inc for $1.17 billion.

** ROVI CORP, $16.10, down 4 pct (9:48 a.m. ET)

Goldman Sachs lowered its rating on the software maker’s stock to “sell” from “neutral”, according to Theflyonthewall.com. Rovi’s software is used in home entertainment devices to play various digital media formats.

The medical device maker reported third-quarter revenue that fell short of analysts’ estimates on Monday and said weak market sentiment in China’s healthcare sector delayed some purchases. The company also announced it plans to buy back up to $200 million of its common shares effective Monday. (Compiled by Natalie Grover; Editing by Don Sebastian)